WTI trades close to $78.00 in thin liquidity amid US market closures, next week's OPEC+ meetings eyed
|- Oil markets are subdued on Thursday amid thin liquidity conditions.
- WTI has been trading close to the $78.00 level.
Oil markets are unsurprisingly subdued on Thursday amid thin liquidity conditions due to US market closures for Thanksgiving. Front-month WTI futures have spent most of what has thus far been a very quiet session ranging in the low-$78.00s/just under $78.00 area, with prices remaining well within recent ranges. Futures trade will halt at 1800GMT and then restart at 2300GMT. Ahead of the market closure, conditions are likely to remain subdued, especially once any remaining European market participants depart after European market closures from 1630GMT.
In terms of fresh fundamentals, the most notable development on Thursday was reports that the US continues to exert pressure on Russia to increase output. The news had little effect on crude oil markets at the time but might be a sign that the Biden administration remains frustrated with its inability to push prices lower. That might mean further reserve releases are on the cards. The main focus for markets remains the response by OPEC+ officials to this week’s oil reserve release announcement from the US and other major consumers.
A Wall Street Journal report on Wednesday suggested that Russia and Saudi Arabia, the two OPEC+ nations who produce the most oil each day, were mulling halting the cartel’s preplanned output hikes in December. But Reuters, citing three sources, subsequently reported that OPEC+ is not discussing slowing output hikes. The organisation meets next week.
Elsewhere, oil markets have broadly ignored pandemic updates. In terms of the latest with regards to the European Covid-19 outbreak and government response; health experts in the Netherlands have reportedly advised that the government order a closure of restaurants and non-essential stores. Outgoing German Chancellor Angela Merkel, meanwhile, has again reiterated her call for tighter restrictions, saying that every day counts to slow the spread. Her calls come after Italy on Wednesday approved new curbs on unvaccinated individuals.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.